The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1887-06-22
Collapse of Coffee and Wheat
Corners.

EARLY last week panic occurred in the
New York coffee market and three large
dealers were Swamped. Wild confusion
prevailed and APO bags of coffee were
sold, or twice as many as on any previous
day in the history of the exchange. The
worst failure was that of Arnold x Co., who
recently made half million dollars by the
advance in prices. They attribute their
failure to lack of time to obtain margins
from customers in Buenos Ayres and Eu-
rope. The other firms were carried down
with them. b. G.. Arnold, the senior mem
Der of Arnold x Co., was overwhelmed in
1889 by the collapse of one of the largest
deals in coffee ever attempted. His firms
liabilities then were over two millions, and
they compromised for sixty cents on the
dollar. He Is known as the founder of the
Coffee Exchange, and was its first president.
THERE was whirlwind of excitement in
the Chicago wheat market last week Tues
day, and prices went down and up at
lively rate. The lowest figure touched by
July wheat during the day was ten and
one-fourth cents under Mondays close.
Although the chief excitement of the day
was in July, yet June wheat sold with the
widest fluctuations-from ninety-two cents
down to ninety cents, up to ninety-one
cents, and then by jumps down to seventy
three cents, when slight reaction occurred.
The lowest figure touched by June was
price. June closed at seventy-four and
three-fourths cents. The deferred futures
declined less sharply, but during the morn
ing dropped about two and one-half cents
for August and September. After the an
nouncement that Rosenfeld & Co. had gone
to the wall came rumors of trouble at Ker-
shaw & Co.'S. At two o'clock it was Off
cially announced that f. w. Bailey & Co.
and Hamll & Brine requested all parties
having trades with them to close at once.
The instant the announcement was made
July wheat dropped to seventy-three and
one-half cents, but soon recovered and
went back to seventy-four cents. AT Mil
waukee, Wis, there was also wild excite
ment. Hill, Flertzheim & Co. were forced
to suspend, dragging down Hooker Crit
tenden & Co. and Frank Wilson, each of
whom, it is understood, called for $50 900 in
margins, failing to get which they were
forced to go under. 1t is expected that all
will speedily resume. John Wilde, also a
broker, announced that he could not meet
margins. The millers at Minneapolis
Mimi, are generally pleased at the collapse
of the wheat corner. All large holders of
wheat have sold largely at Chicago at or
near the top prices, as Chicago prices are
twelve to fourteen cents above Minneapolis
prices, while freight between the two cities
is only four and one-half cents per bushel
and it was largely Minneapolis shipments
which contributed to breaking the backs of
the clique. In fact, it is said on the best
authority that Minneapolis dealers made
large amounts of money by the deal. On
Wednesday seventeen firms We're posted at
Chicago for failure to settle margins. An
estimate of their liabilities cannot be given
but it is safe to say that 20,000,0O0 bushels of
wheat are involved, and that the loss of this
immense block is not less than 5000, 600, or
total of about SS,0OO,000 in two days
Though large cash purchases of wheat are
being made from day to day, the market is
in somewhat unsettled condition. 1t is
believed, however, that there will be no i'm
mediate repetition of the panic.